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Approved : Jun 8, 2006 Signed : Jun 22, 2006 Invested : Aug 14, 2006
Sector
Soft Drink
Industry
other
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
The project involves the establishment of the Wings Group (Wings or the Group)’s ready-to-drink (RTD) plant in Jakarta. Wings, a diversified Indonesian company, is an existing client of IFC. PT Tirta Alam Segar (‘TAS’), whose affiliates are existing IFC clients in Indonesia, is entering into beverage business by establishing a plant in Jakarta.
Environmental and Social
IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors.
The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of a review of technical and environmental/social information provided by the project sponsor. As this project is with an existing client, the results of previous site visits and subsequent performance results reviewed by IFC were also considered in this appraisal.
The following potential environment, health and safety and social impacts of the project were analyzed:
- land acquisition and compensation; - raw material sourcing, pesticide use and water supply; - existing and planned management systems for quality, environment, occupational health and safety, and food, life and fire safety; - liquid and solid waste management; and - workplace conditions and community relations.
The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- Land Acquisition and Compensation
PT TAS, located in Jakarta, was established in 2005 to focus on the ready to drink (RTD) market. The Project will be established in an existing plant that was formerly used by SONY as an electronic manufacturing facility. The project will occupy 4.5 hectares of a 20 hectare site, inside a professionally managed industrial complex. No residents or land users are displaced by Project.
- Energy Use and Air Emissions
Electricity is provided from the local grid, supported by small, backup diesel gensets. The boilers, which provide steam for the pasteurization process, will be powered by diesel generators that will be substituted by natural gas once a reliable supply is available, possibly by the end of 2006. Emissions will be monitored by the company to ensure compliance with local and WB/IFC requirements.
- Raw Material Sourcing, Pesticide Use and Water Supply
Raw materials will be sourced both locally and from international suppliers from countries such as Florida and Brazil and potentially China. Other flavors and ingredients will be procured from large flavor houses and other local / import suppliers, most of which the company already has established relationships with. Water will be supplied from the local industrial estate and monitored by the company to ensure it meets local and WB/IFC requirements. The company will adopt appropriate measures to ensure that suppliers adopt pesticide management measures and monitor their supply chains, in conformance with WB/IFC policies and guidelines. This will be included as part of the Environmental Action Plan for the project.
- Management Systems for Quality, Environment, Occupational Health and Safety, and Food, Life and Fire Safety
As with the company’s existing operations, an integrated quality, EHS, food and fire safety management system will be established. The company is considering to certify the system to ISO 22000. IFC will require that the company achieve certification to an appropriate standard, or standards, which assures that a comprehensive management system is in place covering environmental, social and health and safety issues that meets the requirements of ISO 14001, OHSAS 18001 and HACCP or equivalent, as part of the Environmental Action Plan. The existing facility is equipped with fire safety equipment and a sprinkler system; IFC will require that an audit of the facility be conducted with follow-up actions implemented as required.
- Liquid and Solid Waste Management
A drainage system and wastewater treatment plant will be installed at the facility to meet local and WB/IFC requirements. Wastewater will be reused for general cleaning and landscaping purposes. All solid wastes will be sold to third parties or incinerated in approved facilities. Neither hazardous nor plastic wastes will be generated. Unprinted plastic materials will be recycled within the production process and printed plastic wastes will be chopped, ground and sold to recyclers / third parties for reuse. Solid wastes are collected for disposal by licensed contractors.
- Workplace Conditions and Community Relations
The project will employ approximately 100 employees per shift. Compensation, working hours and workplace conditions will comply with Indonesian labor standards and requirements. The company will provide additional financial compensation based on performance as well as amenity and cultural facilities for staff. To facilitate a positive relationship with the local community, the company has donated significantly to the development of a local school and religious facilities.
This ERS contains the full environmental and social documentation prepared for the project.
Conclusion & Monitoring
Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the following agreed mitigation measures in the Environmental Action Plan.
IFC will evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering:
- the status of implementation of any measures contained in the Environmental Action Plan; and - ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs.
Periodic site supervision visits will also be conducted.
Press-Release
Related SPI
Environmental and Social Documentation
File Name
Actions
Wings PT TAS -EAP.pdf
Similar Projects
This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.
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